City leaders still working through proposals for 2013-14 spending plan

By Molly Phipps / mphipps@shelbystar.com

Published: Thursday, May 23, 2013 at 01:12 PM.

New proposals

Councilman Joel Shores made a new suggestion for the city budget this week: to decrease the city's fund balance, a reserve fund, from 25 percent to 20 percent. After that, the remaining money needed could be transferred from the natural gas fund, which is currently at $10 million, to the general budget. This would prevent any tax increase on citizens.

“That way we can keep everything and give our employees a raise,” he said. “Our employees are a priority.”

City Manager Rick Howell said each budget option presented so far already has an appropriation of money from the fund balance, and that taking money from it is unsustainable from year to year.

He said the fund balance is like a savings account. That money is needed in case of emergencies. He urged city council members to be very careful about taking money from the fund. He also noted that out of the current budget options, one contains a one-time bonus for employees, and another contains a 2 percent increase in payroll.

Cuts to those services were proposed recently as city leaders work to find ways to save money and balance next year's budget.

Leaders decided this week that those cuts weren't in the best interest of the city or its residents and will instead pursue other options.

Several citizens attended this week's city council meeting to urge leaders to reconsider the cuts. Cuts to the golf course and swimming facility were only proposals made by staff during planning for the 2013-14 budget.

The aquatics center at the park will remain on its normal schedule of seven days per week, after council nixed the possibility of cutting several days of operation for what could have been a savings of $18,000. The Royster Memorial Golf Course will also remain in operation, after a proposal to close the course and save the city $135,000.

New proposals

Councilman Joel Shores made a new suggestion for the city budget this week: to decrease the city's fund balance, a reserve fund, from 25 percent to 20 percent. After that, the remaining money needed could be transferred from the natural gas fund, which is currently at $10 million, to the general budget. This would prevent any tax increase on citizens.

“That way we can keep everything and give our employees a raise,” he said. “Our employees are a priority.”

City Manager Rick Howell said each budget option presented so far already has an appropriation of money from the fund balance, and that taking money from it is unsustainable from year to year.

He said the fund balance is like a savings account. That money is needed in case of emergencies. He urged city council members to be very careful about taking money from the fund. He also noted that out of the current budget options, one contains a one-time bonus for employees, and another contains a 2 percent increase in payroll.

No other decisions for the budget were made during this week's meeting.

What's next?

Mayor Stan Anthony and other council members asked Howell to return Wednesday with another budget plan, and possibly more than one.

Howell will submit a balanced budget by June 1 and city council must adopt a budget by June 30.

Comments from the council:

- On raises for city employees , councilman Joel Shores said, “There’s got to be something this year. Let your power go out and nobody comes and fixes it, then you have a problem. It’s time for us to do something.”

-Councilman Dennis Bailey suggested “reducing the general fund, transferring more from the natural gas fund, and changing the parks and recreation charges for non-county residents. It’s about being fair. We need a significant increase for out-of-city memberships.” He also noted the importance of raising salaries for city employees. “We need to make sure our pay scales are competitive enough. We’ve lost police officers to Bessemer City. I’m ashamed of that.”

Bailey did stress the council’s devotion to finding a solution that helps citizens. “Everyone here cares very much about our citizens. We want to do what is right for our citizens and we want to do what is healthy. We’re trying to manage our citizens’ assets as well as we can.”

-Chris Mabry said, “We’re trying to figure out some solutions here. Those fund balances are very important to long term success.” He said it may not be a good idea to take money from them, because it may be needed later. “The fair thing to do is to balance everything,” he said. “I’d like to see some options. We can fine tune this a little better.”

-David White said, “We have cut so many services in Shelby and I’m tired of us cutting services.” He said he would be willing to pay a property tax increase and has not heard any opposition to that.

-Jeanette Patterson said, “I’ve heard lots of people who don’t want the property tax increase. We’ve got to work together. The property tax and utility tax, I can’t vote for that.”

-City Manager Rick Howell said that none of his possible options for cuts were a value judgment on any of the services. They are all important services for the city. “There’s the rest of the story,” he said. “This is a 20 million dollar budget. It’s extremely difficult to make recommendations to cut anything.”

What did residents say?

Several people spoke about budget concerns during the public comments section this week at the city council meeting:

"I’m here on behalf of the Shelby City Parks pool and the pool hours possibly being shortened. It would be a disservice to our community to eliminate that program. Water exercise is a great benefit for everyone. It lets families do something active as a family."

Amy Hendrick Buttrick

"My girls have benefited from swim lessons. I don’t have to be nervous about them when I go to the beach. I ask you to consider not closing the pool during those days."

Julie Brame

"Most of us feel that the bottom line at the golf course can be improved tremendously. We see it as a collaborative effort between members and park administration. We honestly believe that the golf course can do very well financially."

Brian Putnam

Martina Clark also spoke on the budget. She said the changes in waste disposal were not good for some citizens. “Most homeowners that would affect are senior citizens and those without trucks," said Clark. She also felt that city employee salary increases should wait until next year, considering the state of the economy.

Randy Myers said, "What I would like to address is the budget. You have city employees that have been working diligently. They haven’t had a raise in years. That needs to be considered first priority." He also stressed the importance of the golf course and of recreation for both youth and seniors.

Other business this week

Here's what else happened this week at city council:

-A resolution honoring Eugene Philbeck was adopted in appreciation of his service to the city from 1983 to 2013.

-A special use permit for Pinnacle Classical Academy was unanimously approved. Parking lot patterns were changed, but the site at 900 South Post Road otherwise r emains the same.

-A special use permit for the Shelby Rescue Squad was unanimously approved.

-An ordinance to establish a capital project and budget for the replacement of the Shelby Police Department’s roof was adopted.

-An ordinance amendment was unanimously approved so that the Uptown Shelby Association could extend the property on which the beer garden can be run. This would include the West Marion Street parking lot, with a provision for wineries to sell products and hold wine tastings at the new farmer's market. A special events permit would still be needed for people to consume alchohol on the property.

-An ordinance requiring pet owners to clean up after their pets on public or private property and pay a fine for violations was unanimously approved. Before, pet owners were voluntarily cleaning up after their pets. This ordinance, similar to a litter ordinance, will allow that to be enforced.